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The Office of the State Engineer is charged with administering the state's water resources. The State Engineer has authority over the supervision, measurement, appropriation, and distribution of all surface and groundwater in New Mexico, including streams and rivers that cross state boundaries.

The State Engineer is also Secretary of the Interstate Stream Commission.

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New Mexico Office of the State Engineer & Interstate Stream Commission

Water Masters actively administer the distribution of water from stream systems on a daily basis. The State Engineer has the authority to create special water districts and hire Water Masters as the State Engineer determines is necessary for the administration of water rights. Water Masters serve an important function for the Office of the State Engineer because they ensure that water is distributed fairly.

If not funded directly by the legislature, state law provides a means for funding of Water Masters. The State Engineer would provide a budget for Water Masters to the county or counties involved. The counties then can pass on the cost to the affected water users.